News

Q2 2012 NLMK Group Consolidated Financial Results under US GAAP

NLMK, the LSE-listed leading steel producer, today announces its consolidated US GAAP results for Q2 and 6 months of 2012

Despite challenging market conditions NLMK delivered a set of strong operating and financial results. s Q2 sales remained largely flat at 3.8 million tonnes. Q2 revenue grew by 5% q-o-q to US$3.3 billion, driven by the better product mix and hence the slight strengthening of prices. An improved operating performance and reduced costs enabled a 38% increase in our Q2 EBITDA to US$596 million. The Q2 EBITDA margin was around 18%, 4 p.p. up q-o-q.

Outlook:

Due to weaker market conditions globally Q3 revenue could decrease 5-10%, while the sales volume will remain stable for the entire Group. At the same time, the effect of decreasing steel prices will be partially offset by the decrease in raw material prices. The EBITDA margin is expected to be in the range of 16-18%.

NLMK is pleased to invite the investment community to a conference call with the management of NLMK:

NLMK is an international vertically-integrated steelmaking company with production facilities located in Russia, Europe and the US. The liquid steel capacity of its operating units exceeds 15mtpy. The Company generated $11.7 billion of revenues and a 19.5% EBITDA margin for the full year 2011. The Company’s shares and GDSs are traded on the MICEX-RTS and LSE, respectively.